The plan-of-arrangement closing date for the acquisition of Canadian media company Alliance Atlantis by diversified media company CanWest Global Communications and Goldman Sachs Capital Partners has been pushed from August 7 to August 15 while the acquiring parties tinker with financing. The deal was originally expected to be financed with proceeds raised from the issuance of high-yield debt but will now be funded with bridge financing from a banking syndicate.
Under the agreement, CanWest subsidiary AA Acquisition will acquire all outstanding shares of network programmer Alliance Atlantis for $53 per share.
Weak market conditions in the high-yield debt markets in recent weeks caused many prospective deals to be pulled and created a large backlog of offerings. This is forcing companies to look elsewhere for financing.
Toronto-based Alliance Atlantis broadcasts 13 specialty channels, including Canadian versions of BBC, Food Network and National Geographic. It also co-produces, with CBS Paramount Television, the network’s hit procedural CSI.